The method of decommissioning of offshore oil & gas system is essential in terms of environmental safety issues as it has probable consequences on the marine environment, together with disposal of dangerous materials.
Global offshore decommissioning market was valued at US$ 6.3 Billion in 2021 in terms of revenue, exhibiting a CAGR of 5.9% during the forecast period (2022 to 2030).
Offshore decommissioning includes the safe plugging of the matured and nonproductive wells in the earth’s surface together with the disposal of the offshore oil production equipment. This is a legal condition imposed under the Petroleum Act 1998 of the U.K. parliament. Decommissioning is a rapidly growing sector in the field of petroleum business, with potential opportunities and few risks. Major drivers of global offshore decommissioning market are infrastructure aging and maturing oilfields especially in North Sea and Gulf of Mexico. Moreover, decline in crude oil prices are estimated to augment growth of the offshore decommissioning market. Risk involved and high cost for decommissioning are some of the factors restraining the global offshore decommissioning market growth.
Among region, Europe accounted for the largest market share in the global offshore decommissioning market in 2021. The Europe offshore decommissioning market is majorly driven by presence of maturing oil and gas fields. Moreover, stringent government regulations in the European nations allowed the market players to carry out safe and efficient decommissioning activities, which has driven the offshore decommissioning market in this region. Several market players have undertaken steps such as new product launch and contracts signings to successfully carry out decommissioning on their oil fields.
Figure 1. Global Offshore Decommissioning Market Value Share (%), By Region, 2021
Recent downturn in prices of oil is expected to be a key restraint to not only exploration and development activities of oil and gas but also decommissioning operations. Decrease in oil prices has caused a continued decline in cash inflow and rise or hike in debt levels could challenge the future of oil and gas industry.
Offshore Decommissioning Market Report Coverage
|Base Year:||2021||Market Size in 2021:||US$ 6.3 Bn|
|Historical Data for:||2017-2021||Estimated Year:||2022|
|Forecast Period 2022 to 2030 CAGR:||5.9%||Forecast Period:||2022-2030|
Acteon Group Limited, Topicus Finan BV, AF Gruppen ASA, Tetra Technologies Inc., Allseas Group S.A., DeepOcean Group Holding B.V., John Wood Group Plc, and Exxon Mobil Corporation
|Restraints & Challenges:||
Figure 2. Global Offshore Decommissioning Market Value Share (%), By Water Depth, 2021
Based on water depth, shallow water contributed for the largest revenue share of around 66.0% in 2021 in the global offshore decommissioning market. Aging structures in the shallow North Sea and the U.K. continental shelf is likely to propel the demand for decommissioning in the near future. Structures in the North Sea are typically heavier and were not designed by keeping into account the decommissioning cost. Hence, decommissioning these heavier structures requires significant planning and equipment, which ramps up cost.
Major players operating in the global offshore decommissioning market include Acteon Group Limited, Topicus Finan BV, AF Gruppen ASA, Tetra Technologies Inc., Allseas Group S.A., DeepOcean Group Holding B.V., John Wood Group Plc, and Exxon Mobil Corporation.
Frequently Asked Questions